Underemployment

A situation where employees work in jobs that do not fully utilize their skills, experience, or education level.

HR professionals monitor underemployment to improve job-role alignment, enhance workforce planning, and support career progression through targeted development programs.

Is underemployment and unemployment the same?

No, they are different.

• Unemployment means a person is actively looking for work but cannot find a job.
  
• Underemployment means a person has a job but is working below their skill level or not getting enough working hours (e.g., a qualified engineer working part-time as a cashier).
  
  

How to solve underemployment?

Solving underemployment involves:

• Skill development and upskilling to match market demand.
• Creating more full-time and formal sector jobs.
• Encouraging entrepreneurship and small businesses.
• Aligning education with industry needs.
• Expanding access to career guidance and job-matching platforms.

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Why is underemployment a problem in India?

Underemployment is a major issue in India due to:

• A mismatch between education and job market needs.
• Prevalence of informal sector jobs with low wages and no job security.
• Lack of industrial growth in rural and semi-urban areas, pushing people into low-paying or part-time work.